Category: Financial services
Advice:Nancy Burma, president of Jamestown, N.D.-based Alternative Billing Solutions, offers this advice to HME providers on the following financial services:
- Factoring - It's not recommended for long term, but it may be necessary on a short-term basis until you can get your office organized.
- Equipment leasing - Work the numbers. It might be a benefit for some of the higher-dollar items and in the short term on other items, but it should only be a bridge until you have good cash flow. The numbers will tell if there is a benefit.
- Securing a loan - It should be the least expensive option, but again, work the numbers. If you do a good job of collecting, you will find most banks eager to lend you money. However, banks get nervous when they see low collection rates or higher adjustments.
- Accounts receivable - Set forth a plan to maximize collections. It needs to work like a well-oiled wheel, with everyone from customer service to collections having a vital part and everyone ensuring they do their jobs properly.
Next month: Commodes